BOJ board member Asada said that sufficient attention should be paid to the pace of future rate hikes and warned of downside risks to the economy. The comments also again suggested that opinion had been divided over the rate increase at the September meeting.
BOJ board member Asada adopted a cautious stance on future rate hikes, saying that sufficient attention should be paid to the pace, and pointed out that consideration should be given to the risk that rate hikes could weigh on the economy and lower the underlying inflation rate.
In a speech that morning, board member Asada also said that the pace would need to be emphasized if rate hikes continued, underscoring his cautious stance. Against a backdrop of weak private consumption, he expressed concern that the pace of economic expansion could slow.
The policy rate was reportedly raised to around 1.25% at the September monetary policy meeting, with 2 of the 9 policy board members, board members Asada and Sato, opposing the rate hike. The focus of future policy management is expected to shift to the pace of rate hikes.
The BOJ comments reaffirmed the need for caution in future monetary policy management, and it was reported that appropriate, gradual increases would be considered while assessing price trends and private consumption.